3. Customers at a Glance
• Large Industrial Customers
• High Load Factor
• 16 Municipal Wholesale Customers
• 141,000 Electric Customers
Taconite
34%
Other
52%
Paper &
Pulp
12%
Regulated Utility
MWH Sales
Pipeline
2%
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4. Our Constant Responsibility
• Provide a balanced regional energy supply, i.e.,
• affordable, reliable, minimizes environmental impact
• support a competitive business environment and an
exceptional quality of life
Fleet Evolution Since 2005
• Reduced emissions: 70% system-wide
• Added renewables: 20% by 2013
• Lead / exceed state conservation goals (2.1%
in 2011)
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9. Reshaping for Long-Term
MP Energy Sources in 2012 MP Energy Sources in 2024
Latest Integrated Resource Plan
Market Purchases Market
11% Purchases
Expanded 8%
Manitoba Existing
1% Conservation
Coal 1%
MHEB ShortTerm
75%
1%
Manitoba
Wind
LongTerm Coal
6%
11% 53%
Hydro
4%
Biomass Wind
2% 21%
Hydro Biomass
4% 2%
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10. Positioning for the Best Resources
Access to Canadian Hydro Generation Access to quality wind sites in U.S.
Ontario
Manitoba
Minn.
• Capacity factor 43-45%, double the U.S.
• New 250 MW contract with Manitoba through 2035
ü Power Purchase Agreement ~ Approved
average
• 60,000 acres
ü Transmission ~ Under development
ü Bison 1 ~ Complete
• Bison 2 Under
• Bison 3 Construction
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11. Resource Plan Strategy
• Continue strong conservation program
• Further reshape generation portfolio
– Diversify fuel supply
– Accelerate carbon reduction
– Continue ND wind implementation
– Deliver Manitoba Hydro resource
– While remaining reliable, cost competitive
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12. Further Emission Reductions
• EPA rules in formation to further reduce air, water and
waste emissions are projected to have 2 to 3 times
the cost of MP environmental retrofit initiatives
completed between 2006 and 2010.
• Investments at Boswell 4 (largest unit) are showing
environmental and economic benefits for customers for
the long-term.
• Costs of anticipated controls to meet new EPA
requirements impact Minnesota Power s smaller and
oldest units the most.
• Coal based generation shutdowns would carry
significant costs to customers, including those
associated with transitioning to new energy supply
options.
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13. Moving Forward
We will ensure a regional energy supply that is:
• affordable,
• reliable,
• reduces environmental impact and
• promotes a competitive business environment
and an exceptional quality of life.
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14. Margaret Hodnik
Vice President – Regulatory and Legislative Affairs
mhodnik@mnpower.com
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